How to Buy Shares on the Internet

There are three basic ways in which a person may be able to buy a share. One is through post, another is through telephone and the last would be through the internet. All of these ways most often than not, depending on your needs require a broker. Yet with the advent of the internet and considering the cost to be paid to a broker, more and more people nowadays have learned how to read stock exchanges the market through online. This saves time and cost.

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The internet, the most convenient among the three ways on how to buy shares deal with "execution only" service. This pertains to a relationship online between a broker and a buyer of shares. The broker will only take the instructions of the buyer verbatim. He will not give out any financial advices or any other assistance other than placing the order of the buyer. Roughly, you will pay 0.5pc stamp duty on top of the cost of dealing.

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In internet share dealing however, you must learn to trust those services which buy and sell shares in real time. In this way, you will know the exact price of the shares you are actually going to pay for. This is in contrary with other internet share dealing which do not offer this kind of service. To some, they only schedule a particular time when to buy and sell shares. The danger of this is that, you might be surprise to pay the price of what you do not expect. This type of service is a way of practice by internet share dealers to keep their costs down.

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If this happens, your account will be held by your broker on your behalf and you will have no idea about the company's report and accounts. Dividends will then just be paid into your account, that is, if it has become a company policy to release dividends. Dividends, as we speak are never an obligation to every company which allows stockholding. Other than this, since you are not holding any share certificates in internet share dealing, you must be, by all means in contact with your broker to whom you bought your shares otherwise, if you choose to swap to another firm, your broker will charge you a fee per stock.

How to buy shares over the internet should depend on your needs and your budget. One should be able to compare prices across the board and must know how much it will cost him. Time and again, one needs to read the fluctuations of stock value in every market he desires to purchase it from. Basic trading roughly begins at less than 10GBP per trade and anything lower than that is suspicious enough for one to be alert as the danger of hidden charges and cost may just be somewhere.

There are a number of trusted online and offline internet share dealers nowadays which offer a very good price of a basic trading. Among which are TD Waterhouse and the Share Center. These two have been consistent with their company practice and dealing via the internet and are very friendly for new buyers. Information and guidelines on how to buy shares and sell them are well set for you to follow.